Home / Business and Economy / Paytm Profit Soars 79%, But Stock Dips on Bonus Share Decision
Paytm Profit Soars 79%, But Stock Dips on Bonus Share Decision
21 Jul
Summary
- Net profit surged 79% to ₹220 crore in Q1 FY27.
- Revenue grew 28% to ₹2,448 crore, driven by payments.
- Company forgoes bonus shares to prioritize long-term growth.
In the first quarter of fiscal year 2027, One97 Communications, the parent entity of Paytm, announced a notable 79% surge in net profit, reaching ₹220 crore. This strong financial performance was accompanied by a 28% increase in revenue, which totaled ₹2,448 crore for the quarter ending June 2026.
The company's Payment Services business was a key driver of this growth, with revenue climbing 33% year-on-year. This expansion was supported by increased merchant payment volumes and a growing payments ecosystem. Profitability saw substantial improvement, with reported EBITDA jumping 182% to ₹203 crore.
During this period, the board evaluated a proposal for bonus share issuance. However, they concluded that prioritizing business growth and profitability would best serve long-term shareholder value, thus deciding against issuing bonus shares at this time.
The company also reported an accelerated Gross Merchandise Value (GMV) growth of 31% year-on-year. This acceleration is attributed to ongoing investments in product development and merchant services, alongside positive momentum in the online merchant business after obtaining the Payment Aggregator license.
